First the US Fed started raising interest rates because the economy was doing so well (in their view despite a wickedly low participation in employment rate), and bond traders sold short-dated and bought long-dated Treasuries. Yesterday, at 82 basis points between 5 and 30-year paper, it’s at its flattest since 2007. Yesterday the Bank of England raised rates by 25 basis points and guess what bond traders did. Bought long-dated Gilts.
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